E2open Parent Holdings, Inc. (NYSE:ETWO) Q2 2024 Earnings Call Transcript - Page 3 of 3 - InvestingChannel

E2open Parent Holdings, Inc. (NYSE:ETWO) Q2 2024 Earnings Call Transcript

Chad Bennett: Okay. Have we – just in terms of asking I think piggybacking on a prior question about kind of the balancing act between growth reacceleration and in EBITDA and free cash flow generation. So I – it doesn’t sound like at least for this year, there is incremental sales and marketing, go-to-market investment needed, I guess especially which I’d love to know kind of where or how the $20 million was spent in incremental investment the last year. But I – is it fair to say, you know, that’s not definitive in terms of the need for incremental investment in the next fiscal year?

Marje Armstrong: Yes, thanks for the question. So, if you recall last fiscal year, we made pointed investments in our brand relaunch, as well as, you know, marketing overall. Those are one-time investments, this is articulated last year. We also did – made a lot of SI system integrator-related investments to kick-start those relationships. Those were the one-time investments last year. This year, we’ve paired down those, you know, again last year’s one-time investment and instead, since the beginning of the year, our stated strategy has been to invest in the go-to-market motion and, you know, currently again where we are really focused on, you know, working within that envelope. You know, there could be slight changes here and there, but you know, really the focus is increasing the productivity and the approach and all the things that Greg has mentioned throughout the call.

In terms of next year, you know, again, we’re not providing guidance for fiscal year ’25 at this point, but again along with our new Interim CEO and Greg, you know, we’re going to be working on the plans, obviously and starting the pre-planning for next year and we’ll make sure to update you as those plans evolve.

Chad Bennett: Okay, one last one for me. So just in terms of looking at the business fresh in changing or restructuring things going forward whether it’s go-to-market or otherwise, just in terms of everything that’s on the table, I mean, I think everybody appreciates the fact that you have the broadest, you know, supply chain end to end platform out there in the market, but I think some of that maybe the feedback, you know, from salespeople, that at least we’ve associated with is, especially if there is a lot of churn in new salespeople is, do you have too much to sell? And do all these, you know, 14, 15 acquisitions over the last seven, eight years make sense to be under the E2 umbrella? And I guess it’s some type of, you know, monetization potential of these assets on the table, especially considering the leverage on the balance sheet, then I’ll jump off. Thanks.

Marje Armstrong: Yes. Great question. I think, you know, in many ways, you’re exactly right, this is what we’re doing as a management team right now, again partnering between sales, finance and product, to really define the focus in investment areas, you know, in terms of products and also understanding, you know, where are the rationalization opportunities in terms of SKUs, non-core legacy products, are there opportunities to divest some of them, et cetera? So this is all the opportunity that we’re going to be working through as a team, you know, in the next coming years and months, quite frankly. So this is exactly the opportunity that we’re – we have in front of us and it’s broad – part of the broader, you know, post a big wave of M&A integration and rationalization.

Greg Randolph: Yes, and look, I would add that, you know, in my 25-year career of leading enterprise software sales organizations, I’ve had a much broader portfolio of products than what exists here. I think the point you’re making is a valid point. And that we shouldn’t try to approach the market by boiling the ocean and I think the approach that we’ve got up here what it take is a very measured focused approach. And in the industries, the use cases and the geographies and markets that we play well in and be super-focused on delivering the appropriate value proposition in those segments and I’m convinced that we can absolutely make that happen with the portfolio of products that we take to market.

Marje Armstrong: And again just to round that up, you know, ultimately the end-to-end supply chain software platform that has been assembled through these acquisitions is ultimately going to be a key competitive advantage for us and continuing to provide, you know, cross-sell opportunities. We just need to execute on those and that’s really the task at hand is to make sure that we have the right people in the right seats with the right product knowledge and ability to, you know, understand the customers, understand the products and really execute this broader strategy and vision for the company.

Chad Bennett: Got it. Appreciate the color. Thank you.

Marje Armstrong: Thank you for the question.

Operator: Okay. We have no further questions in queue. We have reached the end of the question and answer session. This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.

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